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10 Smart Money Moves if You Have $1 Million to Invest

Here's how to make your million work harder for you.

By Chris Adam

Edited by Esther Carlstone

Updated Nov. 5, 2025

Reaching a major financial milestone often calls for strategic action. Hitting $1 million in savings, for example, can be the perfect time to start investing — and with that amount of money, it can feel like your options are nearly endless.

So, how do you make that money work for you? Here are some smart moves to consider.

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Invest in real estate for long-term growth

Search for financial advice online, and you'll find plenty of debate about real estate investing. If you decide to give it a try, one option is buying properties to rent out to tenants.

Do your research. Choose properties in growing areas where the values are likely to increase and check local trends before committing to help mitigate any potential risks.

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Add real estate investment trusts (REITs) for liquidity and diversification

You could also take another route involving real estate without renting to tenants. Real estate investment trusts (REITs) are publicly traded companies that own or finance real estate.

You can purchase REIT shares through your financial advisor or a broker. REITs are more liquid but keep in mind they can be especially sensitive to changes in interest rates.

Secure a steady income through annuities

If you want reliability, perhaps an annuity is a good option. This method provides you with a passive source of income in retirement. You sign a contract stating what you can expect to receive for a certain amount of time. Some begin sending payments right away, and others are deferred.

However, annuities often offer lower returns than other investments and may lack flexibility if you want to access or move your funds later.

Generate passive income through dividend stocks

Dividend stocks are another investment option to consider. These are shares of companies that pay out a portion of their profits to shareholders on a regular basis. You can research dividend-paying companies on your own or consult a financial advisor.

Just remember that stock performance isn't guaranteed, and your returns can still be affected by market fluctuations.

Balance risk with fixed-income securities

When discussing options with your financial advisor, you might explore treasury bonds. These are U.S. government securities that pay a fixed interest over a long term — typically more than 10 years. Interest is paid at regular intervals.

They're generally less risky than stocks and can help stabilize your investment portfolio.

Build a bond ladder for predictable returns

If you're not familiar with a bond ladder investing approach, it involves purchasing individual bonds that mature at different times. This is another option that may provide a more predictable income and reduce investment risk, since a portion of the bonds mature regularly and you can reinvest at current rates. Consider both municipal and treasury bonds.

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Diversify your portfolio with income funds

You could also look at options such as exchange-traded funds (ETFs) and mutual funds. Income funds focus on generating income by investing in dividends, bonds, preferred stocks, or a mix of different things.

Some funds are designed to be tax-efficient, which can help you keep more of your earnings.

Explore private credit funds for higher potential yields

Another investment possibility is private credit and alternative income funds. Private credits lend money to individuals and businesses, and return income through interest payments. These funds are less correlated with public markets.

Just remember: while they may target higher yields, they can come with higher risks and less liquidity.

Maintain cash reserves for flexibility and security

This may be an important reminder to keep in mind: Not all of your money needs to be invested. It may be a smart money move to keep some of it in high-yield savings accounts, certificates of deposit or money market funds to give stability and liquidity.

This way, you rack up modest monthly interest and have easy access to cash for unexpected events. This buffer can also help reduce the need to sell riskier assets when the markets are down.

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Invest in a small business you believe in

If you have $1 million to invest and an entrepreneurial spirit, you could look into starting your own business with a small portion. Of course, this option may come with lots of work and some huge risks, so it won't be a "smart" money move for everyone.

Still, if you have a dream or passion for a certain industry, this could turn into a wise investment that brings you joy and financial wellness in the long run.

Bottom line

Along with being one of the signs of financial success, hitting $1 million in savings can open the door to new investment opportunities — and help you avoid running out of money in retirement. From real estate to annuities to even starting a small business, there are many smart money moves that can help your wealth grow and last.

With that amount of money to start, a financial advisor or broker can be a valuable partner. With so many online resources, it's easier than ever to find a professional who aligns with your values and goals.

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Author Details

Chris Adam

Chris Adam is a writer for FinanceBuzz as well as a seasoned personal finance, technology, and general assignment journalist. As a broadcast and digital journalist, he's served as a leader in network and local newsrooms. Some of his favorite topics to write about include investing, shopping, retail, and stocks.